Post
Topic
Board Economics
Re: Why bitcoin's exchange rate won't drop too much
by
JorgeStolfi
on 16/12/2013, 03:17:34 UTC
One extreme example:

Suppose that one guy have 31 million dollars, he bought all the 21 million coins at $1, and sold 10 coins to others. Then, he still have $10 million at hand. Then he refuse to sell any coins below a market price of $1 million and are willing to buy any coin at a price of $1 million. Then bitcoin's market price will be $1 million, and his total net worth will be $21 trillion (By using only 31 million dollars, he raised his net worth to 21 trillion dollars)

So the guy did no productive work, but just by sitting on his Bitcoins he got so fabulously wealthy that he can buy the US Gross National Product wth only half his wallet.

Don't you feel that there must be something wrong with this scenario?

Being rich means that you own a disproportionate slice of the world's real wealth. You cannot increase your slice without reducing that of someone else.

The Bitcoin cabal cannot force people to use Bitcoin to buy things or services.  If doing so means giving their slice of the world to the Bitcoin cabal, people will use some other currency.